After days of speculation, Gallant Capital Markets Ltd, the parent company of the forex broker GCMFX, has just upload an announcement on its website revealing some information about what lead the company last week to file for bankruptcy protection in the US Bankruptcy Court for the Eastern District of New York.
The firm, which is regulated by the British Virgin Islands Financial Services Commission, said this drastic move aimed to facilitate restructuring its balance sheet to better position itself for future opportunities.
Crypto Daily Sponsors Singapore’s 2019 Run for Light EventGo to article >>
The most interesting part in the GCMFX’s statement reads that it has sought bankruptcy court protection due to its inability to withdraw funds from one of its regulated counterparties in order to meet liquidity demands. Based on this, the decision to file was done after a comprehensive review of all options available to the company.
Finally, GCMFX said it has notified its regulatory body and will provide its clients with all relevant information as soon as the court allows.
We understand from the press release that GCMFX is not under liquidation but just seeks court protection to fix its finances and core business on the way to an expedited exit from bankruptcy protection and possibly in the hopes of making another ‘go’.